Education administrators look to pick up financial slack

As state aid declines, school districts discuss alternative revenue sources

By Lainie SteelmanReporter/Lifestyle Editor

Discussions about alternative revenue streams are on the rise as school districts across the state continue feel the squeeze from declining state revenue.

Macomb School District has already initiated another measure to bring in funds from alternative sources: Allowing outside groups or individuals to provide sponsorships. After the Macomb Agriscience Association began raising funds to bring an agriculture program back to Macomb High School, the school board adopted a policy to allow such sponsorships while maintaining autonomy.

Macomb School District has also opened the door to sponsorship of the football field and basketball courts starting next school year, but Macomb Board of Education President Matt Bierman said the district's administration team is still working on attracting sponsors.

According to the school district's budget reduction plan for 2014-15, which the board approved at its March meeting, the district hopes to enhance its revenue by $20,000 through sponsorship of the football field and basketball courts.

Another option McDonough County school districts have looked is the school facilities sales tax, a county-wide sales tax of up to 1 percent that requires passage of a ballot referendum.

Eighteen counties across the state have the facilities sales tax. But according to several local school administrators, the facilities tax isn't being actively pursued because school districts are too limited in how the proceeds, which are distributed to school districts based on student enrollment, can be used.

"It's a limited resource, because we need money in the education fund," said Mary Mendenhall, who serves on the Bushnell-Prairie City School Board's ad hoc committee formed to investigate alternate revenue sources. "It's not going to solve the problem because the money is only for buildings and infrastructure. Nobody is actively pursuing it."

West Prairie Superintendent Jonathan Heerboth said there wasn't enough enthusiasm a couple years ago when officials had a round of meetings about the school facilities sales tax.

"In order to pass a 1-percent sales tax, I think the voters have to see something tangible out of it, such as a new building," he said. "But it's a smart move on the part of voters because there is a significant amount of revenue in the sales tax not generated by local residents."

During a June 3 special Macomb Board of Education meeting held to discuss a number of topics, Macomb Superintendent Patrick Twomey said he'd like to see revenue from a school facilities sales tax or possibly a municipal sales tax — a city tax with more spending flexibility — go to help upgrade the school district's building interiors.

"We've done a good job of maintaining our facilities, but the insides are outdated," he said, adding they haven't been updated since the 1970s. "The physical space itself is not the best for what we know kids need to learn today."

Heerboth has a solution for school districts' revenue problem: "A fully-funded school aid formula."

Currently, school districts are receiving their state aid prorated to 89 percent of what they are owed, and school administrators expect that to continue for the 2014-15 fiscal year.

A bill that would overhaul state education, Senate Bill 16, is currently in the General Assembly and passed the Senate on May 27. The bill has been in the House's rules committee since May 28 and shows little sign of movement.

"Until the state figures out how they're going to raise the revenue for a whole gamut of social services," Heerboth said, "I don't know what the answer is."

Reach Lainie Steelman via email at lsteelman@McDonoughVoice.com, or follow her on Twitter @LainieSteelman.

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